Glossary

Reasonably available control technology (RACT) is the designation for pollution control technology that is reasonably available and both technologically and economically feasible.

A rebate is the sharing of the agent's or broker's commission with the insured.

Rebating refers to returning a portion of the premium or the agent's/broker's commission on the premium to the insured or other inducements to place business with a specific insurer.

Recapture refers to the process by which a ceding company takes back a risk or risks that previously were ceded to a reinsurer.

A reciprocal is an unincorporated group of individuals or organizations (subscribers) that agree to pool risks for the purpose of paying the cost of retained losses and purchasing reinsurance.

Reciprocal insurance refers to insurance written through a reciprocal exchange.

Reciprocity is the exchanging of reinsurance between two reinsurers, frequently in equal amounts.

Rectification coverage provides first-party insurance for the costs a contractor incurs in correcting a design defect that is discovered after the construction is put in place but before it actually results in a professional liability claim. Coverage is provided within some contractors' professional liability insurance policies.

Under contractors professional liability insurance, rectification/mitigation (R/M) insurance pays for the expenses reasonably incurred during the mitigation or rectification of a negligent act, error, or omission arising from professional services (performed by or on behalf of the insured) that would otherwise lead to a professional liability claim. Rectification/mitigation coverage is a primary coverage. Rectification coverage has become a common insuring agreement or coverage part under a typical contractors professional liability policy. Claims that utilize the rectification insuring agreement are on the rise, with nearly every insurer offering the coverage in both frequency and severity. Known by some as rectification coverage and others as mitigation coverage, it is intended to circumvent what could otherwise be a lengthy process of litigation to recover costs associated with design, engineering, and/or other professional service errors created by an insured or those hired by the insured.

Recurrent disability is a period of disability resulting from the same or a related cause of a prior disability.